It's a Stretch

Updated Oct. 4, 2004 12:01 a.m. ET

With office rents falling in the nation's top markets, landlords have sought to stabilize cash flow by inducing tenants to extend their leases. Many are re-signing at blended rates that combine the current rate with a lower one likely in the future. Office REITs have been real-estate-sector laggards for the past two years, a trend that could continue.